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PXLW (Pixelworks) Degree of Operating Leverage : -1.21 (As of Mar. 2025)


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What is Pixelworks Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pixelworks's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.21. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Pixelworks's Degree of Operating Leverage or its related term are showing as below:

PXLW's Degree of Operating Leverage is ranked better than
72.66% of 995 companies
in the Semiconductors industry
Industry Median: 0.98 vs PXLW: -1.21

Pixelworks Degree of Operating Leverage Historical Data

The historical data trend for Pixelworks's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pixelworks Degree of Operating Leverage Chart

Pixelworks Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.02 -0.65 -0.70 -3.96 -0.49

Pixelworks Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.07 0.90 0.39 -0.49 -1.21

Competitive Comparison of Pixelworks's Degree of Operating Leverage

For the Semiconductors subindustry, Pixelworks's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pixelworks's Degree of Operating Leverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Pixelworks's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Pixelworks's Degree of Operating Leverage falls into.


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Pixelworks Degree of Operating Leverage Calculation

Pixelworks's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -31.93 (Mar. 2025) / -20.227 (Mar. 2024) - 1 )/( 34.246 (Mar. 2025) / 65.765 (Mar. 2024) - 1 )
=0.5786/-0.4793
=-1.21***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Pixelworks  (NAS:PXLW) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Pixelworks Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Pixelworks's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Pixelworks Business Description

Industry
Traded in Other Exchanges
Address
16760 SW Upper Boones Ferry Road, Suite 101, Portland, OR, USA, 97224
Pixelworks Inc is a provider of visual processing semiconductor and software solutions that enable consistently high-quality and authentic viewing experiences in a wide variety of applications. The company defines its key target markets as Mobile (smartphone and tablet), Home and Enterprise (projectors, personal video recorders (PVR), and over-the-air (OTA) streaming devices), and Cinema (creation, remastering, and delivery of digital video content). The company operates in one segment: the design, development, marketing and sale of IC solutions for use in electronic display devices. The company generates its revenue from two broad product markets: the Mobile market and the Home and Enterprise market. The majority of the revenue is earned in Japan.
Executives
Haley F Green officer: Chief Financial Officer 16760 SW UPPER BOONES FERRY RD., SUITE 101, PORTLAND OR 97224
Todd Debonis officer: Chief Operating Officer 47211 LAKEVIEW BLVD, FREMONT CA 94538
Daniel Heneghan director
John Y. Liu director 16760 SW UPPER BOONES FERRY RD., SUITE 101, PORTLAND OR 97224
Dean Warren Butler director C/O SYNAPTICS INCORPORATED, 1251 MCKAY DRIVE, SAN JOSE CA 95131
Elias Nader officer: VP and Chief Financial Officer 1778 MCCARTHY BLVD., C/O SIGMA DESIGNS, INC., MILPITAS CA 95035
C Scott Gibson director PMB 316, PO BOX 30,000, JACKSON WY 83002
David J. Tupman director 1028 CHURCH ST., SAN FRANCISCO CA 94114
Amy L Bunszel director 226 AIRPORT PARKWAY, SUITE 595, SAN JOSE CA 95110
Richard L Sanquini director 14087 LOMA RIO DR, SARATOGA CA 95070
Steven L Moore officer: VP Finance, CFO & Treasurer
Stephen L Domenik director, officer: Chief Executive Officer C/O SEVIN ROSEN FUNDS, 13455 NOEL RD #1670, DALLAS TX 75240
Bruce A Walicek director 8100 SW NYBERG ROAD, TUALATIN OR 97062
Northern Right Capital Management, L.p. other: Member of a 13(d) 10% Group 9 OLD KINGS HWY. S., 4TH FLOOR, DARIEN CT 06820
Bradley J. Shisler other: See Remarks 7400 49TH AVENUE NORTH, NEW HOPE MN 55428